Glen Owns a Building That Is Used in Business

question 51

Multiple Choice

Glen owns a building that is used in business.The building is worth $200,000,but is subject to a mortgage of $40,000.Glen's basis in the building is $120,000.Glen exchanges the building for investment land worth $150,000 plus $10,000 cash.In addition,the other party assumes the mortgage which will be held for investment.Glen must recognize a gain of

• A)$0.
• B)$10,000.
• C)$50,000.
• D)$80,000.

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Definitions:

Mathematical Ability

The capacity to understand, manipulate, and solve numerical and logical problems.

Genetic Component

The part of a characteristic or disease risk attributed to variations or mutations in genes.

Fluid Intelligence

The aspect of human intelligence that involves the ability to solve new problems, use logic in novel situations, and identify patterns.

Crystallized Intelligence

The faculty to employ previously gained insights and life events effectively.